Form 4: Hess Corp Executes Share and Unit Transactions in Hess Midstream LP

Hess Corp reports changes in beneficial ownership of Hess Midstream LP securities, including cancellation and transfer of Class B shares and Opco Class B Units.

Summary

• Hess Corp filed a Form 4 detailing changes in its beneficial ownership of Hess Midstream LP securities.
• On June 26, 2024, 1,024,471 Class B Shares were cancelled for no consideration in connection with Hess Midstream Operations LP's repurchase of 1,024,471 Opco Class B Units from Hess Investments North Dakota LLC (HINDL).
• Subsequently, these Opco Class B Units were also cancelled.
• Additionally, 675,110 Class B Shares were transferred from Hess Midstream GP LP to HINDL for no consideration.
• Following these transactions, Hess Corp's indirect ownership includes 46,353,019 Class B Shares, 36,694,450 Class B Shares, and 449,000 Class A Shares.
• Hess Corporation disclaims beneficial ownership of such securities except to the extent of its pecuniary interest therein.

Sentiment

Score: 6

Explanation: The document describes routine transactions related to ownership structure. It's neither particularly positive nor negative from an investment perspective.

Positives

• The transactions appear to be part of a restructuring or simplification of ownership within the Hess Midstream LP structure.

Industry Context

These transactions are typical of corporate restructuring and simplification efforts often seen in master limited partnerships (MLPs) like Hess Midstream LP, potentially aimed at improving efficiency or investor appeal.

Comparison to Industry Standards

• Similar transactions are common among MLPs and their parent companies, such as Energy Transfer Partners and its various subsidiaries, where simplification of ownership structures is a recurring theme.
• These restructurings often mirror moves by companies like Kinder Morgan, which consolidated its various entities to streamline operations and improve access to capital markets.

Related Party Transactions

• The transactions involve related parties, including Hess Midstream Operations LP, Hess Investments North Dakota LLC (HINDL), and Hess Midstream GP LP.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the restructuring of ownership.
• The impact on other stakeholders such as employees, customers, suppliers, and creditors is likely minimal.

Key Dates